Mobile internet drives DiGi's continued growth in Q4 2012
Solid progress on business transformation lays strong foundation for future growth in data
Shah Alam, 6 February 2013: DiGi.Com Berhad (DiGi) reported solid growth in the fourth quarter of 2012, driven by continued good uptake of mobile internet services which fuelled the Company to a strong finish in 2012. For the year under review, mobile internet customers increased from 5.2 million to 5.7 million, with mobile data revenues now accounting for 32.7% of the Group's overall service revenues.
Henrik Clausen, Chief Executive Officer of DiGi explained that the strong growth in data revenues was driven by higher internet usage and increased smartphone penetration from a bigger mobile internet customer base. "Our focus on delivering quality experience on our network, enhancing relevance of our product bundles, and offering a consistent retail experience with the launch of over 70 new DiGi Store and DiGi Store Express, saw overall customer experience improving. This consequently resulted in higher usage and new customers in the data segment.
"In the fourth quarter, we further capitalised on the quality of our network, following the completion of our modernisation effort in the Klang Valley, to push even harder on data with more products and services from our collaboration with social media partners in parallel with increasing our accessibility and convenience through our enhanced online store."
During the year, DiGi increased its capital expenditure to RM700 million in line with the progress made on the company's business transformation programme, which includes modernisation of its network, information system and information technology (IS/IT) infrastructure, and distribution channels. In the year, DiGi emphasized significantly on delivering a quality network experience, an important foundation needed to enable Internet For All. More than 3,200 sites have been swapped to date while maintaining good control on quality in addition to expanding 3G service to more than 60% of Malaysia's population coverage.
Clausen said that he was pleased that the company emerged stronger from the challenging and highly competitive year. "We continued to grow our business on the back of an increasingly competitive market, in a year where we further operationalised an ambitious business transformation programme. Data will continue to be a significant growth area for DiGi and I am pleased with the progress we have made in putting the fundamental building blocks in place to ensure we are well positioned to deliver a robust mobile internet usage experience moving forward to more Malaysians through better quality and larger coverage as part of our Internet For All mission," Clausen added.
For the year under review, the Group sustained the growth trajectory with overall revenue for the year improving by 6.7% to RM6.4 billion while earnings before interest, tax, depreciation and amortization (EBITDA) was RM2.9 billion, at a margin of 46.0%. DiGi's customer base increased to 10.5 million as of the end of 2012.
DiGi announced that it will pay a fourth interim tax exempt dividend of 2.5 sen per ordinary share for the financial year ended 31 December 2012.